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entires for monetary exchanges with commercial substance and without commercial subst
... Cowher Co... Hinson Co.
Equipment(cost)... $450,000... $825,000 Accumulated depreciation... 145,000... 525,000 Fair market value of equipment... 280,000... 350,000 Cash received)paid)... (70,000)... 70,000 1.Cowher Co. and Hinson Co. traded the above equipment.The exchange has commercial substance.Make entries on the books of both companies. 2.Cowher Co. and Hinson Co. traded the above equipment.The exchange lacks commercial substance.Make entries on the books of both companies. |
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